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Changing the t-stat wouldn't fix the problem. The t-stat is just like the thermostat in your house, it regulated the temperature of the area to keep a constant temperature. In this case, it tries to keep the coolant of the engine around 192-195 degrees. If the thermostat was stuck closed, you'd over heat the engine. If it was stuck open, it would over-cool the engine.
Can you be more descriptive? Does the gauge needle move at all or does it just stay as far over to C as possible? Do you get any movement from it?
The guage sending unit is to the right and alil back from the distributor, mounted in the lower intake manifold. It's almost between the oil fill cap and distributor. It has 1 wire going to it. Take that wire off, and ground it. Turn the key on and see if the gauge needle pegs itself out on the hot side. If it does, then you know the gauge in the dash is functional. If it does not, then you've probably got a bad wire connection. Most likely the gauge in the dash is ok, but the wiring between them are bad.
Thats a good starting point.
Last edited by MustangGT221; Jul 13, 2005 at 04:32 PM.